Ethereum soared alongside bitcoin, posting its biggest single-day percentage gain since May 2021. Ethereum surged close to 30% in a stunning Ethereum price rally. This increase was primarily driven by crypto-native investors deeply participating in the spot market. The recent surge was met with highly intense selling pressure at the $2,500 level. This important area is supported by the 100-week Simple Moving Average (SMA).
This bullish surge triggered the largest liquidations in the futures market’s history. In only the last 24 hours, $364 million disappeared. US spot Ether ETFs have been seeing net outflows. Overall, sentiment around Ethereum is cautiously positive, with a focus on key technical levels and sustained spot market momentum.
Spot Market Activity Fuels Rally
Ethereum’s stunning 21.8% surge on Thursday was a big one, the largest single-day increase since May 24, 2021. This was the bullish surge that pushed Ethereum from $1,800 to retest the important $2,500 resistance floor, further indicating robust bullish momentum.
The fairest way to characterize this rally is that it has largely been driven by the activity of crypto-native investors in the spot market. According to orderly.io data, investors have pulled a net 180K Ethereum from exchanges. This points to an intentional accumulation strategy and it’s pushing the price up.
This build-up is a stark divergence from the US spot Ether ETF performance. They experienced their third straight day of net outflows on Thursday, shedding $16.11 million. This divergence underlines the completely different dynamics at work between traditional investment vehicles and the crypto-native market.
Technical Indicators and Key Resistance Levels
ETH technical indicators offer more context to the ongoing bloodbath in crypto. Even the Relative Strength Index (RSI) has skyrocketed above its yellow moving average line. Currently, it is testing its neutral level, which would be a sign of a change in momentum.
That said, it’s still the $2,500 threshold that is the biggest line of defense, bolstered by the 100-week SMA. Ethereum came down to retest this level prior, only to face a fierce rejection, showing just how strong of a selling reach was found here.
If Ethereum manages to do so and pierce the $2,500 resistance, the next significant level to monitor is $2,850. This positive scenario would be invalidated by a weekly candlestick close below $1,680. Such a scenario may even plunge ETH toward the key support at roughly $1,400.
Futures Market Liquidations and Sentiment Analysis
The big price action in Ethereum caused a lot of liquidations especially in the futures market. In the last day, $364 million worth of futures positions got liquidated.
Of this, $158.74 million was from long positions that were liquidated. Of that total, $205.61 million was due to short positions being liquidated, indicating that a deeper bearish sentiment was more surprised by this unexpected move to the upside.
Here’s what analyzing the Weighted Sentiment of Ethereum tells us about Ethereum and investor perception. This data provides traders and investors insight into the trader/investor sentiment and an ability to gauge likely future price movements.
